As part of our ‘Overcoming Barriers to securing R&D Grant Funding’ series, we look at how common challenges to securing R&D grants can be navigated by working with specialist partners.
In part one, we take a look at Sprk Capital, a specialist financing partner who offer a alternative, non-dilutive source of capital for matched funding.
R&D Grant Funding
R&D Grants will often fund a percentage of the overall project costs – 70% grant funding is common for UK and European grants for an SME. The other 30% (referred to as Match Funding) must come from the applicant. Match funding is normally over £100k. What if you don’t have the match funding?
Likewise, R&D grants will often require the applicants to cashflow the first quarter of the project – there is not always an up-front grant payment. The first quarter of an R&D grant-funded project is often £100k+. What if you don’t have sufficient cashflow?
Venturenomix has partnered with Sprk Capital to help overcome this barrier of match funding / cashflow funding an R&D grant.
Sprk Capital offers:
- Quick turnaround on a lending decision in line with the tight timeframe between the award of the grant and the start of the project
- Flexible borrowing facility that acts as a credit line throughout the R&D project that you can draw on as and when needed, quarterly or monthly
- No personal guarantees required to secure the lending
- Lending for match funding and/or project cashflow
- Funding for R&D Tax Credit Claims as well as R&D Grant Funding
“Sprk was founded to solve the cashflow needs companies engaged in innovation. A Sprk Advance provides a solution to companies to allow them to invest without the requirement for other dilutive forms of capital such as raising equity. Speed, certainty and transparency of finance are core to our business. Working alongside advisors with a strong track record in Grant applications is key for us and we’re pleased to be partnering with Venturenomix.”Dominick Peasley, CEO Sprk
We have seen how hard-won R&D grant funding can be lost due to cashflow / match funding barriers – it is very frustrating for all parties. So, if you would like an introduction to Sprk Capital, get in touch with us or visit their website directly.
For more on overcoming barriers, check out our new Partners page.